medium · Investment Banking ma-lbo
Vanguard (Acquirer) has a standalone EPS of $7.00 on 150 million shares. It acquires Summit (Target) for $4,200 million in a 100% stock deal. Summit generates $400 million in Net Income.
If Vanguard's share price is $70.00, what is the pro forma EPS, assuming zero synergies or transaction adjustments?
- $6.90
- $6.67
- $7.33
- $7.15
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